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“There is a direct cost to the economy if the strikes continue and we need to work together in partnership with workers and trade unions and business in order to get sustainable growth back into the economy.”<\/p>\n
Since June 2022, train drivers have taken 18 days of strike action and refused to work non-contractual overtime, causing huge disruption on the rail network. <\/p>\n
According to the Department for Transport, the rail industry has missed out on around \u00a3850m in revenue as a result. <\/p>\n
But Conservative shadow transport secretary Helen Whately condemned the government’s approach, saying “a ‘no strings’ deal means this will be paid for by passengers and taxpayers”. <\/p>\n
“Ditching working practice reforms leaves a hole in the finances that can only be filled by higher fares or higher taxes,” she added.<\/p>\n
Conservative leadership contender Tom Tugendhat weighed in, accusing Labour of “feeding the union paymasters that they\u2019ve always obeyed\u201d. <\/p>\n
He told GB News his party had always insisted on linking public sector pay rises to “productivity benefits”. <\/p>\n
“We\u2019ve always asked for transformations in working environments, to make sure that we\u2019re getting more bang, as it were, for your buck.” <\/p>\n
Chancellor Rachel Reeves has warned “difficult decisions” will need to be made in October’s Budget, and accused the previous Tory government of leaving a \u00a322bn hole in the public finances.<\/p>\n
She has indicated that some taxes are likely to rise, but has insisted Labour will stick to its manifesto promise not to raise income tax, National Insurance or VAT. <\/p>\n
Tory shadow Commons leader Chris Philp posted on X that the train drivers’ pay offer and other recent deals with public sector unions were “the choices the Labour government is making that will lead to tax rises this autumn”. <\/p>\n<\/div>\n<\/div>\n
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